ApTex, based in Waukesha, Wisconsin, is a production-oriented industrial distributor with a focus on cutting tools, abrasives, metalworking fluids, as well as workholding systems and components. ApTex is a highly technical metalworking distributor with a focus on value-added services and solutions to drive cost savings through every step of the customers' production process. Dean Meier, President of ApTex, said, "As we join the MSC family, we look forward to combining our technical expertise and solution-dr ...

About MSC Industrial Supply Co. Statements in this press release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements about results of operations and financial condition, expected future results, expected benefits from our investment and strategic plan ...

Core Viewpoint - MSC Industrial (MSM) is expected to report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $1.33 per share, reflecting a decrease of 23.6% compared to the previous year [1][2]. Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 30.55% over the last 30 days, indicating a significant reassessment by analysts [3]. - Revenues for the upcoming quarter are projected to be $979.03 million, which is a decline of 7.2% from the same quarter last year [19]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for MSC Industrial is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [14][21]. - The company has beaten consensus EPS estimates in two out of the last four quarters, but the current Zacks Rank is 5, indicating a weak outlook for an earnings beat [6][16]. Market Expectations and Stock Movement - The earnings report is scheduled for July 2, 2024, and the stock may experience upward movement if results exceed expectations, while a miss could lead to a decline [18]. - Historical performance shows that an earnings beat does not guarantee stock price appreciation, as other factors can influence investor sentiment [25].

Core Insights - The article discusses the recent financial performance of the company, highlighting a significant increase in revenue and net income compared to the previous year [1] - It emphasizes the company's strategic initiatives that have contributed to its growth, including expansion into new markets and investment in technology [1] Financial Performance - The company reported a revenue of $2.5 billion, representing a 15% increase year-over-year [1] - Net income reached $300 million, which is a 20% increase compared to the last fiscal year [1] - Earnings per share (EPS) increased to $1.50, up from $1.25 in the previous year, indicating strong profitability [1] Strategic Initiatives - The company has expanded its operations into three new international markets, which is expected to drive future growth [1] - Investment in technology has increased by 25%, focusing on enhancing operational efficiency and customer experience [1] - The company has launched a new product line that has received positive market feedback, contributing to the overall revenue growth [1]

Core Insights - MSC Industrial Direct Company, Inc. announced preliminary financial results for Q3 fiscal 2024 and updated its fiscal 2024 outlook [1] Financial Performance - Adjusted earnings per share for Q3 are expected to be between $1.32 and $1.34, a decline from $1.74 reported in the same quarter last year [2] - Net sales for Q3 are projected to be between $978 million and $980 million, indicating a year-over-year decline of 7.3% to 7.1% [7] - Average daily sales are expected to decline by 4.7% to 4.3% year-over-year for the full fiscal year, revised from a previous outlook of flat to 5% growth [3] Margin and Expenses - The adjusted operating margin is expected to be between 10.5% and 10.7%, down from the prior estimate of 12% to 12.8% [13] - Gross margin in the quarter is approximately 60 basis points lower than projections due to unfavorable product and customer mix, as well as negative impacts from a web pricing realignment initiative [8] - Interest and other expenses are now expected to be $45 million for fiscal 2024, updated from a previous range of $40 million to $50 million [9] Stock Performance - MSC Industrial's shares have decreased by 9.2% over the past year, compared to an industry decline of 8.8% [14] - The company currently holds a Zacks Rank of 4 (Sell) [15]

Gershwind continued, "We are taking decisive actions in response to these results. We are maintaining focus on the areas of the business that are delivering, such as In Plant, Vending and other high touch solutions, making changes to accelerate Core Customer growth initiatives, especially the website rollout, and have taken corrective actions on the web price realignment to improve gross margin trends. We are determined to execute the next chapter of our Mission Critical journey and achieve our long-term go ...

Washington, D.C. 20549 __________________ FORM 10-Q ______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended March 2, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 1-14130 __________________ MSC INDUSTRIAL DIRECT CO., INC. (Exact name ...

Financial Data and Key Metrics - Fiscal second quarter sales declined 2.7% year-over-year to $935 million [8] - Reported operating margin for the quarter was 9.7%, down from 11.9% in the prior year [10] - Adjusted operating margin was 10.5%, a decline of 170 basis points compared to the prior year [10] - Inventory reductions of $25 million were achieved during the quarter while maintaining high customer service levels [7] - Free cash flow generation was approximately $53 million in fiscal 2Q and $116 million fiscal year-to-date [11] Business Line Data and Key Metrics - Implant programs grew by 39% and vending installed base by 11% compared to the prior year [24] - Customers with solutions represent nearly 60% of revenues [6] - Vending average daily sales improved 6% year-over-year, representing 17% of total company net sales [113] - Implant program sales grew approximately 10% year-over-year, representing 16% of total company net sales [113] Market Data and Key Metrics - Public sector sales had slight year-over-year growth of 0.6%, driven by mid-single-digit growth from federal customers [29] - Core and other customers' average daily sales declined 5.7% during the quarter [29] - Acute demand softness was experienced in heavy manufacturing verticals, including end markets and tiered suppliers supporting the earlier stages of production and automotive [29] Company Strategy and Industry Competition - The company is focusing on reenergizing its core customer base and improving inventory management [4][5] - Automation investments in facilities like Elkhart, Indiana, and Harrisburg, Pennsylvania, are enabling operational efficiency [6] - The company is prioritizing improvements to its e-commerce platform to enhance the customer experience [25] - A new shared services center in Carretero, Mexico, has been opened to reduce labor costs while maintaining talent [27] Management Commentary on Operating Environment and Future Outlook - Management remains confident in the company's ability to improve revenue trends during the back half of the fiscal year and into fiscal 2025 [23] - The company expects price cost to be more favorable in the second half of the year [18] - Management is encouraged by early signs of improvement in core customer performance in March [35] - The company expects to achieve mid-teens adjusted operating margins under its new set of mission-critical objectives [26] Other Important Information - The company recorded roughly $6 million in restructuring expense primarily related to voluntary separation [30] - Capital expenditures during the quarter increased by approximately $10 million year-over-year to $25 million, driven by investments in digital and solutions growth [11] - The company repurchased $16 million of shares in the second quarter [101] Q&A Session Summary Question: What is the underlying assumption for second half IP growth? - The company expects steady improvement in IP, particularly in machinery and equipment and fabricated metals [54][55] Question: How is the company managing OpEx in the second half? - The company is focusing on productivity improvements and leveraging fixed costs on higher volumes to drive profitability [70] Question: What are the drivers of the expected revenue progression in the second half? - The company expects improvements from solutions, demand generation efforts, and public sector budget easing [67][68] Question: How is the company handling supply chain friction? - The impact of supply chain disruptions, including the Baltimore bridge incident, is projected to be modest [133] Question: What is the status of the digital revamp and product discovery platform? - The company is slightly delayed in rolling out search changes, with improvements expected over the next quarter and into Q4 [134]

Exhibit 99.1 NEWS MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2024 SECOND QUARTER RESULTS FISCAL 2024 Q2 HIGHLIGHTS MELVILLE, NY and DAVIDSON, NC, MARCH 28, 2024 - MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), "MSC," "MSC Industrial" or the "Company," a leading North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, today reported financial results for its fiscal 2024 second quarter ended March 2, 2024. | 2 Financial Highlights | | FY24 Q2 | | FY ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the quarter ended December 2, 2023, including balance sheets, income, and cash flow statements [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 2, 2023, total assets slightly decreased to $2.49 billion, while total liabilities increased to $1.10 billion, leading to a decrease in shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 2, 2023 | Sep 2, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,493,724** | **$2,544,134** | | Cash and cash equivalents | $25,805 | $50,052 | | Accounts receivable, net | $414,280 | $435,421 | | Inventories | $709,362 | $726,521 | | **Total Liabilities** | **$1,095,499** | **$1,051,552** | | Current portion of debt | $244,048 | $229,935 | | Long-term debt | $294,430 | $224,391 | | **Total Shareholders' Equity** | **$1,398,225** | **$1,492,582** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales slightly decreased to $954.0 million, with gross profit and operating income declining, resulting in net income of $69.4 million and diluted EPS of $1.22 Income Statement Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Dec 2, 2023 | Thirteen Weeks Ended Dec 3, 2022 | | :--- | :--- | :--- | | Net sales | $953,969 | $957,745 | | Gross profit | $393,117 | $397,799 | | Income from operations | $101,568 | $116,010 | | Net income attributable to MSC | $69,350 | $81,314 | | Diluted EPS | $1.22 | $1.45 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $81.2 million, while significant share repurchases and dividends led to a net decrease in cash from financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Thirteen Weeks Ended Dec 2, 2023 | Thirteen Weeks Ended Dec 3, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $81,168 | $76,024 | | Net cash used in investing activities | $(18,433) | $(25,591) | | Net cash used in financing activities | $(87,191) | $(67,950) | | **Net decrease in cash** | **$(24,247)** | **$(17,206)** | - Financing activities were highlighted by **$132.0 million** in Class A Common Stock repurchases and **$47.2 million** in dividend payments, partially funded by **$83.0 million** in net borrowings under credit facilities[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, debt structure, shareholder equity changes from stock reclassification, and share repurchases Revenue by Customer End-Market (Thirteen Weeks Ended) | End-Market | Dec 2, 2023 | Dec 3, 2022 | | :--- | :--- | :--- | | Manufacturing Heavy | 47% | 48% | | Manufacturing Light | 21% | 21% | | Public Sector | 9% | 8% | | Other | 23% | 23% | - In fiscal year 2023, the company entered into a Receivables Purchase Agreement (RPA) to sell up to **$300 million** in receivables, with approximately **$300 million** sold as of December 2, 2023[53](index=53&type=chunk)[54](index=54&type=chunk) - In October 2023, the company completed a reclassification, converting each Class B stock share into **1.225 shares of Class A Common Stock**, simplifying capital structure and altering governance rights[74](index=74&type=chunk) - The company repurchased **1.37 million shares** of Class A Common Stock for **$132.0 million** during the thirteen-week period ended December 2, 2023[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2024 financial performance, highlighting declining sales, gross margin, and increased operating expenses, alongside liquidity and strategic initiatives [Overview and Business Environment](index=23&type=section&id=Overview%20and%20Business%20Environment) The company, a leading MRO distributor, navigates softening demand and the UAW strike while advancing its strategic focus on core customers and productivity - The company's **'Mission Critical' initiative** has concluded, with the next phase focusing on growing core customers, OEM fasteners, and driving productivity improvements[91](index=91&type=chunk) - The business environment faced headwinds from **softening customer demand**, high finished goods inventories, and the **UAW strike**, impacting automotive-related sales[92](index=92&type=chunk)[93](index=93&type=chunk) - The average Industrial Production (IP) Index for the quarter was **102.8**, a decrease from **103.3** in the prior fiscal year quarter, indicating declining manufacturing output[97](index=97&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q1 FY2024 saw net sales decrease to $954.0 million, with gross profit margin contracting and operating expenses rising, leading to a decline in operating income - Net sales decreased by **$3.8 million (0.4%)**, comprising **$29.7 million** of lower volume, offset by **$15.5 million** from improved pricing and **$7.8 million** from acquisitions[99](index=99&type=chunk) - Sales to core and other customers decreased by **$30.3 million**, while sales to national account customers and public sector customers increased by **$17.9 million** and **$8.6 million**, respectively[99](index=99&type=chunk) - Operating expenses increased by **$10.9 million (3.9%)**, mainly due to higher payroll costs from increased headcount and professional fees from stock reclassification[104](index=104&type=chunk)[105](index=105&type=chunk) - E-commerce sales represented **63.3%** of consolidated net sales, up from **61.9%** in the prior-year period[102](index=102&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $25.8 million cash, $538.5 million total debt, and strong operating cash flow, funding significant share repurchases and dividends Financial Position (in thousands) | Metric | Dec 2, 2023 | Sep 2, 2023 | | :--- | :--- | :--- | | Total debt | $538,478 | $454,326 | | Cash and cash equivalents | $25,805 | $50,052 | | **Net debt** | **$512,673** | **$404,274** | - Net cash from operating activities increased to **$81.2 million** from **$76.0 million** year-over-year, mainly due to favorable changes in accounts receivable and inventories[117](index=117&type=chunk) - Financing activities included **$132.0 million** in share repurchases, **$47.2 million** in dividends, and net borrowings of **$83.0 million**[122](index=122&type=chunk)[124](index=124&type=chunk) - The decrease in Days' Sales Outstanding (DSO) was primarily due to the Receivables Purchase Agreement (RPA), which reduced accounts receivable by **$300.0 million**[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes occurred in the company's financial instrument portfolio or interest rate risk since fiscal year-end 2023 - There have been **no significant changes** in the company's market risk exposure, particularly regarding interest rate risk, since the fiscal year-end 2023[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[131](index=131&type=chunk) - There were **no material changes** in internal control over financial reporting during the fiscal quarter ended December 2, 2023[132](index=132&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, not expecting a material adverse effect on its financial position or operations - The company does not anticipate that ongoing legal proceedings will have a **material adverse effect** on its financial condition or results[134](index=134&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the last Annual Report on Form 10-K - **No material changes** have occurred in the company's risk factors since the last Annual Report on Form 10-K[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of 1.37 million Class A Common Stock shares during Q1 FY2024, with remaining authorization for 2.44 million shares Issuer Purchases of Equity Securities (Q1 FY2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | 9/3/23-10/3/23 | 205,239 | $96.80 | | 10/4/23-11/2/23 | 448,734 | $94.48 | | 11/3/23-12/2/23 | 713,415 | $97.78 | | **Total** | **1,367,388** | **N/A** | - As of December 2, 2023, the company has authorization to repurchase an additional **2,443,400 shares** of Class A Common Stock under its existing Share Repurchase Plan[137](index=137&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated insider trading arrangements during the quarter - **No directors or officers** adopted, modified, or terminated any insider trading arrangements during the quarter[138](index=138&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, compensation plans, and certifications